Amy Dyloen, controllar at Shaffeld Pharmaceutical Industriss, a public company, is currently preparing the calculation for basic and

diluted aarnings par share and the relatad disclosure for Shaffeld's financial statemants. Palow is selected financial information for

the fiscal year ended June $30,2025.$

Sheffield Pharmaceuticl Industries

Selected Balance Sheet Information

June $30,2025$

Lona$-$term debt

Notes payable, $10\%$

Shareholders' equity

Preferred stock, $5\%$ cumulative, $$50$ par valua, $95,000$ sharss authorized, $23,750$ sharss issuad and outstanding $$1,197,500$

Common stock, $$1$ par, $9,900,000$ sharss authorized, $990,000$ shares issued and outstanding $990,000$

Additional paid$-$in capital

Retained earnings

Total shareholders' equity

The following transactions have also occurred at Sheffiald.

$1$ Options were grantad on July $1,2024,$ to purchase $220,000$ shares at $$14$ per share. A$/$theugh no options were evercised

during fiecal yazr $2025,$ the avarage price per commen share during fiscal yaar $2025$ was $$20$ per share.

$2$ Each bond was isued at face value. The $996$ comvertible bonds will convert into common stock at $50$ shares per $$1,000$ bond.

The bonds ars exarcisable after $5$ years and wers issued in figcal year $2024.$

The preferred stock was issued in $2024.$

There are no preferred dividends in arrears; however, preferred dividends were not declarad in fiscal year $2025.$

The $990,000$ shares of common stock were outstanding for the entire $2025$ fiscal year.

Net income for fiscal year $2025$ was $$1,520,000,$ and the avarage income tax rate is $20\%.$

For the fiscal yaar anded June $30,2025,$ calculate the following for Sheffeld Pharmacautical Industries. $($Round answers to $2$ decimal

places, es$.2\mathrm{.}45.$J$.$J

a$.$ Pasic earnings per share.

Basic aarnings par shara $

b$.$ Diluted earnings per share

Diluted earnings per share $